≈ If you must pick one indicator, make it this one. ≈
The world of charting is littered with indicators. There are hundreds of them. And every year, tinkering traders add another few dozen to the pile. A little tweak here, a slight shift there, and voila! a new custom indicator is born.
We joke that a great many of these chart studies are created in the redundant department of redundancy. Because all they do is re-hash the message already being broadcast by price, they are, in most cases, unnecessary. We’re on a mission to declutter charts and simplify the art of technical analysis. If you haven’t already, spend some time viewing and reviewing our Technical Analysis 101 series to understand the bedrock principles.
That said, there is one indicator that our coaches find indispensable: the moving average. Over the next few days, we will highlight why these smoothing mechanisms are so darn sexy and how they can help you make better trading decisions.
Chart of the Day
Like a drug, charts can be misused and abused. This is an example of a poor ticker whose price is being suffocated by too many indicators. The signal is lost amid the noise.
Video of the Day
What are Moving Averages
In this clip from the Coaches Lounge, Coach Mark expresses his love for moving averages.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show 8:30 PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Financial freedom is a journey
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